PERTH (miningweekly.com) – Oil and gas major Santos has signed agreements to farm in a 20% stake in a petroleum prospecting licence in Papua New Guinea (PNG).
The interest will be acquired from Oil Search and ExxonMobil, and will give Santos participation in the recently spudded Muruk 1 exploration well, which is targeting the Toro Formation, which is gas bearing in the nearby Hides and Juha fields, and is expected to have a mean gas resource of some 2-trillion cubic feet at a proposed depth of 3 450 m.
Santos MD and CEO Kevin Gallagher said on Thursday that the agreement demonstrated the company’s commitment to growing its position in Papua New Guinea and working with its long-term partners to explore and develop.
The farm-in agreement is subject to customary regulatory approvals.